A Case Study On Centralized Fund Management Of R Construction Group

The global and sustainable economic development has brought many opportunities for various group companies in China.Their operating scale has steadily increased and their profits have steadily increased.Group companies have become the target of many large enterprises.This not only urges enterprises to undergo financial management transformation,but the year-toyear expansion of the business has led to more stringent requirements for capital management,and the entire economic system has shown an upward trend in financial management year by year.The organizational structure,capital structure,operating scale and working procedures of these large groups are different from those of single-type enterprises.The internal organization is large and complex,involving multiple departments and agencies,and has a close relationship with such as property rights and contractual relationships.As we all know,capital is the prerequisite for the production and operation of an enterprise,and it is an important link for the development of relationships and connections among members within the enterprise.Centralized fund centralized management,as the center of corporate governance and operations,is a management innovation that focuses on maximizing profits as the goal and can meet the development needs of enterprise groups.Therefore,in order to ensure the smooth operation and long-term development of the business,it is necessary to allocate and manage funds.The main problem today is how to establish centralized management of funds for large enterprise groups.At present,most state-owned enterprises implement centralized fund management,of which 30 have established financial companies,nd have achieved significant results in centralized fund management.Some companies have also established capital settlement centers and achieved good management results.However,the centralized management of funds is still a weak link in the management of some construction companies,and it is an authentic imported product.With the implementation of the national “Belt and Road” initiative,most group companies are developing cross-border businesses.The foreign currency accounting for multinational accounts will lead to untimely and incomplete control of funds,so it is difficult to fully grasp the operation of the funds of each subsidiary,so it may happen that the company’s financial problems cause the entire group to fall into endless debt.Disputes and security issues result in excessive losses.Even some construction companies are experiencing the phenomenon that "the output value is getting higher and higher,but the rate of return is getting lower and lower," or the scale of the project is getting larger,but bank loans are also increasing.Compared with foreign companies,advanced centralized fund management information technology is used to track and monitor the operating status and cash flow of each subsidiary.This centralized financial and fund centralized management is also a prerequisite for achieving corporate grouping and crossborder operations.Therefore,as the leading company in the construction industry,R Group,how to safely and quickly make cash flow smoothly,how to effectively reduce financial costs,and how to strengthen the management of the company group and avoid the "mass production,small workshop management" model,Become the focus of R Group’s control over funds.This article introduces how R Group conducts centralized fund management through five processes: bank account management and fund collection,centralized fund budgeting,centralized fund accounting,centralized fund control,centralized management of revenues and expenditures,and indicates which processes can be improved and optimized.At the end,it puts forward reasonable optimization suggestions to ensure the maximum use of funds,and expects the continuous promotion of centralized management of funds by construction companies,stabilizes the market competitiveness of group companies,and strengthens the "soft power" of financial management.Through the research on the centralized management of R Group’s funds,it will help R Group to strengthen the centralized management of funds under normal development conditions,help enterprises to use funds more effectively,and exert the effect of limited funds of 42 or 2 pounds;it can also crack the construction industry under the new situation Bottlenecks in commercial credit funds of enterprises,prevent and control financial credit risks,and reduce the company’s dependence on bank loans.At the same time,other companies can also learn from the research results and make appropriate adjustments to the centralized management of funds based on the company’s own situation.Although the centralized management of R Group’s funds is still in the exploration and trial stage,and it faces various contradictions and difficulties,as long as the superior department attaches importance to it,actively communicates and coordinates,sincerely cooperates with each other,trusts and interacts with each other,strengthens organizational leadership,and continuously innovates and improves Utilizing its "gathering wealth" effect,the centralized management of funds will achieve better results and lay a good foundation for the Group’s economies of scale.